Bernanke Sends Dollar Higher

We have noted that in recent weeks, the Fed officials have not been shy about commenting about the dollar, even when unsolicited by reporters. The first comments from Bernanke point to this as well. Bernanke says that the Fed is keeping an eye on the dollar--though apparently not sufficiently to mention it in the recent FOMC statement. He also says that the Fed's policy will help ensure that the "dollar is strong". It is not clear what exactly that means. Still the dollar has jumped on the news after the euro ran out steam earlier in front of the $1.50 level. On other issues Bernanke has not broken any new ground. At the end of last week, the euro found a base near $1.4825. That support is key. A break would suggest a move back toward $1.4625.